Fitch rates Liberty Oil Mills BBB-(ind)

Fitch Ratings said it assigned Liberty Oil Mills Ltd. an issuer rating of BBB-(ind), along with BBB-(ind)/F3(ind) ratings to its outstanding long-term bank loans aggregating Rs.150 million, BBB-(ind)/F3(ind) ratings to its Rs. 1.5 billion cash credit limits interchangeable with non-fund based limits and an F3(ind) rating to its interchangeable fund based and non-fund based limits of Rs. 4.57 billion.

The ratings reflect Liberty's established position in the palm oil market in India, Fitch said, and its increased focus on manufacturing rather than trading.

The ratings are primarily constrained by the high degree of volatility of commodity prices, coupled with the relatively thin margins that provide Liberty with only a limited cushion in the case of adverse price movements, the agency said.

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